Corporate Profile

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NYSE: FDP
47.55
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Volume: 182,500
10/20/17 Minimum 20 minute delay

Fresh Del Monte Produce Inc. is one of the world’s leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared food in Europe, Africa, the Middle East and the countries formerly part of the Soviet Union. Fresh Del Monte markets its products worldwide under the Del Monte® brand, a symbol of product innovation, quality, freshness and reliability for over 100 years.

Why Invest in Fresh Del Monte Produce Inc.?

  • Our Business is Global

    We source and distribute our fresh produce products globally. Our products are grown primarily in Central and South America, Africa and the Philippines. We also source products from North America and Europe. Our products are sourced from company-controlled farms and independent growers. We transport our fresh produce to markets using our current fleet of 11 owned and 6 chartered refrigerated vessels, and we operate four port facilities in the United States. We operate 40 distribution centers, generally with cold storage and banana ripening facilities in our key markets worldwide, including the United States, Germany, Japan, South Korea, Hong Kong, France, the United Arab Emirates and Saudi Arabia. We currently have 18 fresh-cut facilities in the United States, the United Kingdom, Japan, the United Arab Emirates and Saudi Arabia, some of which are located within our distribution centers. Through our vertically integrated network, we manage the transportation and distribution of our products in a continuous temperature-controlled environment. We also have 17 food and beverage retail outlets in the Middle East. This enables us to preserve quality and freshness, and to optimize product shelf life, while ensuring timely and year-round distribution. Furthermore, our position as a volume producer and shipper of bananas allows us to lower our average per-box logistics cost and to provide regular deliveries of our premium fresh fruit to meet the increasing demand for year-round supply.

    We market and distribute our products to retail stores, club stores, wholesalers, distributors and foodservice operators in more than 100 countries around the world. North America is our largest market, accounting for 55% of our net sales in 2016. Europe, the Middle East and Asia regions are our other major markets, accounting for 17%, 14% and 12% of our net sales in 2016, respectively. Our distribution centers and fresh-cut facilities address the growing demand from supermarket chains, club stores, foodservice providers, mass merchandisers and independent grocers to provide value-added services, including the preparation of fresh-cut produce, ripening, customized sorting and packing, just-in-time and direct-store-delivery and in-store merchandising and promotional support. Large national chains are increasingly choosing fewer suppliers who can serve all of their needs on a national basis. We believe there is significant opportunity for a company like ours with a full fresh and fresh-cut produce line, a well-recognized brand, a consistent supply of quality produce and a national distribution network to become the preferred supplier to these large retail and convenience store chains, and foodservice customers. We believe we is uniquely positioned as a preferred supplier, and our goal is to expand this status by increasing our leading positions in our fresh-cut produce, avocado, banana and pineapple businesses, and diversifying our product lines into higher margin, more profitable products as a means of expanding our revenue stream and making our performance more predictable.

  • Our Brand is Recognized Worldwide for Quality
  • Del Monte® is a brand that is recognized by consumers worldwide for quality, freshness and reliability. We have the right to use the Del Monte® brand worldwide in perpetuity on a royalty-free basis for fresh fruit, fresh vegetables and other fresh produce. As a result of the Del Monte Foods Europe 2004 acquisition, we have a royalty-free perpetual license to use the Del Monte trademark on processed foods and beverages in over 100 countries throughout Europe, Africa, the Middle East and the countries formerly part of the Soviet Union.

  • Our-Products Meet or Surpass Customer Expectations

    Fresh Del Monte delivers nourishing, high-quality Del Monte® branded products that consumers need in their everyday lives. These products include whole fresh and fresh-cut fruit and vegetables and a prepared product line in Europe, Africa, the Middle East and the countries formerly part of the Soviet Union that includes prepared fruit and vegetables, juices, beverages, snacks and desserts.

    The Company's fresh-cut produce line continues to gain prominence in many global markets. By offering our products in a ready-to-serve, ready-to-eat style, we are meeting the demands of busy consumers, individual retailers and our many commercial food service customers, including restaurants, schools and hospitals.

  • We have Leading Market Positions

    Fresh Del Monte Produce Inc. holds leading market position in several key fresh product categories. At the end of December 30, 2016, we believe we are:

    • The largest marketer of fresh pineapples worldwide;
    • The third largest marketer of bananas worldwide;
    • A leading marketer of fresh-cut fruit in the United States, Japan, the United Kingdom, United Arab Emirates and Saudi Arabia;
    • A leading year-‘round marketer of branded grapes in the United States;
    • A leading grower, re-packer and marketers of tomatoes in the United States;
    • A leading marketer of branded non-tropical fruit in selected markets; and
    • A leading marketer for branded canned fruit and pineapple in the European Union (EU), other European markets and the Middle East.
  • Our Capabilities are Unique in our Industry

    Fresh Del Monte has a unique global network that enables us to source and distribute our products on a worldwide basis. We believe that these sourcing and logistics capabilities, combined with the power of the Del Monte® brand, enables us the opportunity to lead our industry in the future. For example, at the end of December 2016;

    • We source our products from Company-controlled farms and independent growers located in all corners of the globe.
    • We transport our products to key markets via our fleet of owned and chartered refrigerated vessels.
    • We operate 40 global distribution centers, many with cold storage and ripening facilities in key markets worldwide.
    • We operate 18 fresh-cut facilities that serve the needs of consumers in the United States, Europe, Asia and the Middle East, some of which are located in our distribution centers.

    Our vertically integrated network allows us to manage the transportation and distribution of our products in a temperature-controlled environment, which enables us to preserve quality and freshness and to optimize product shelf life while ensuring year-‘round distribution. What’s more, we continue to expand our network of distribution centers and fresh-cut facilities throughout select regions of the world. These investments meet growing demand from supermarket chains, club stores, mass merchandisers and independent grocers to provide value-added services, including the preparation of fresh-cut fruit and vegetables, ripening, customized sorting and packing, direct-to-store delivery and in-store merchandising and promotional support. In total, we market and distribute our products to retail stores, wholesalers, distributors and foodservice operators in more than 100 countries around the world.

  • We Lead the Branded Fresh-Cut Industry

    We believe that the fresh-cut produce market continues to be one of the fastest-growing categories in the fresh produce segment, largely due to consumer trends favoring healthy and conveniently packaged ready-to-eat foods. We established a platform in this industry through acquisitions and by building upon our existing fresh-cut pineapple business. We believe that our experience in this market coupled with our sourcing and logistics capabilities and the DEL MONTE® brand have enabled us to achieve a leading position in this highly fragmented market. We believe that we are the leading supplier of fresh-cut fruit to the supermarket, convenience and club store channels in the United States. Our fresh-cut fruit products include Del Monte Gold® Extra Sweet pineapples, melons, grapes, citrus, apples, mangos, kiwis and other fruit items. The fruit we use in our fresh-cut operations are sourced within our integrated system of company-controlled farms and from GAP-certified (good agricultural practices) independent growers. We also offer fresh-cut vegetables for prepared salads. We purchase our vegetables for these purposes from GAP-certified independent growers principally in the United States, Europe and in the Middle East. Our purchase contracts for both fruit and vegetables are typically short-term and vary by produce item. Our fresh-cut products are sold in the United States, Canada, the United Kingdom, the Middle East and Japan. Worldwide, our fresh-cut product sales volumes have increased by 21% during the past year.

    We Have a Seasoned Management Team
  • We have one of the most seasoned management teams in our industry, with managers having an average of more than 20 years of industry experience. This outstanding team has a solid growth strategy, and interests that are directly aligned with those of Fresh Del Monte’s shareholders.

  • Safe Harbor Disclosure: This press release contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company's plans and future performance. These forward-looking statements are based on information currently available to the Company and the Company assumes no obligation to update these statements. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties. In this press release, these statements appear in a number of places and include statements regarding the intent, belief or current expectations of the Company or its officers (including statements preceded by, followed by or that include the words "believes," "expects," "anticipates" or similar expressions). The Company's plans and performance may differ materially from those in the forward-looking statements as a result of various factors, including (i) the uncertain global economic environment and the timing and strength of a recovery in the markets the Company serves, and the extent to which adverse economic conditions continue to affect its sales volume and results, including the Company's ability to command premium prices for certain of its principal products, or increase competitive pressures within the industry, (ii) the impact of governmental initiatives in the United States and abroad to spur economic activity, including the effects of significant government monetary or other market interventions on inflation, price controls and foreign exchange rates, (iii) the impact of governmental trade restrictions, including adverse governmental regulation that may impact the Company's ability to access certain markets, (iv) the Company's anticipated cash needs in light of its liquidity, (v) the continued ability of the Company's distributors and suppliers to have access to sufficient liquidity to fund their operations, (vi) trends and other factors affecting the Company's financial condition or results of operations from period to period, including changes in product mix or consumer demand for branded products such as its, particularly as consumers remain price-conscious in the current economic environment; anticipated price and expense levels; the impact of crop disease, severe weather conditions, such as the recent adverse weather conditions in the Company's banana production areas, or natural disasters, such as earthquakes, on crop quality and yields and on its ability to grow, procure or export its products; the impact of prices for petroleum-based products and packaging materials; and the availability of sufficient labor during peak growing and harvesting seasons, (vii) the impact of pricing and other actions by the Company's competitors, particularly during periods of low consumer confidence and spending levels, (viii) the impact of foreign currency fluctuations, (ix) the Company's plans for expansion of its business (including through acquisitions) and cost savings, (x) the Company's ability to successfully integrate acquisitions into its operations, (xi) the impact of impairment or other charges associated with exit activities, crop or facility damage or otherwise, (xii) the timing and cost of resolution of pending legal and environmental proceedings, (xiii) the impact of changes in tax accounting or tax laws (or interpretations thereof), and the impact of settlements of adjustments proposed by the Internal Revenue Service or other taxing authorities in connection with the Company's tax audits, and (xiv) the cost and other implications of changes in regulations applicable to its business, including potential legislative or regulatory initiatives in the United States or elsewhere directed at mitigating the effects of climate change. All forward-looking statements in this report are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements. The Company's plans and performance may also be affected by the factors described in Item 1A. - "Risk Factors" in Fresh Del Monte Produce Inc.'s Annual Report on Form 10-K for the year ended December 30, 2016 along with other reports that the Company has on file with the Securities and Exchange Commission.